You have an investment opportunity that promises to pay you $12,979 in four years. Suppose the opportunity requires you to invest$9,540 today.What is the interest rate you would earn on this investment?Note: Use tables, Excel, or a financial calculator. Do not round your intermediate values. Enter your answer rounded to the nearestwhole percentage. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)Solve for iPresent Value:n =i =Future Value:

GIVEN VALUES: Present Value: 9,5402Future Value: 12,9793Number of periods (n): 4 years Step 1: The…

Answered: You have an investment opportunity that…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Similar questions

Solve the following problem. Use Excel, financial calculator, or PV and FV Tables. Show your work with the formulas and figures inserted in them. What is the present value of an investment that pays AED 100,00 every year for four years if the interest rate is 8 percent compounded quarterly.
None
Compute the profitability index for the following proposal, assuming the desired minimum rate of return is 12%. Use the present value factors with six decimal places at the end of your Chapter 25 notes; don’t use the tables in your textbook. Round all intermediate calculations to TWO decimal places; also round your final answer to TWO decimal places. (See your Chapter 25 notes, pages 9 & 14) Initial cash outlay................................. $16,000 Net cash inflow (after taxes): Year 1................................................. $10,000 Year 2.................................................. $9,000 Year 3.................................................. $6,000 Year 4......................................................... $0 Total net inflows.................................. $25,000
If a particular investment will pay $500, 5 months from now, and an additional $500, 9 months from now, what is the largest amount that an investor should be willing to invest today, assuming money earns a rate of return of 7%? Assume that the investment has no money left after the two withdrawals.
Please correct answer and don't use hend raiting
Find the total value TV of the given income stream and also find its future value FV (at the end of the given interval) using the given interest rate. HINT [See Examples 4, 5.] (Round your answers to the nearest cent.) R(t) = 50,000, 0 < t < 5, at 10% TV - $189539.34 FV = $305255 Submit Answer X × 12
Suppose that you are planning to buy a boat in in 28 years [cell B3] for $100,000 [cell B2], and you deposit into your account the amount of $26,000 CAD [cell B1]. (a) What average annually compounding rate of return (as a percentage, correct to 2 decimals) should you earn so you can accumulate the lump sum needed to achieve your goal [cell B5]? Use the RATE function.(Note: You might have to modify the format of cell B5 so that it shows 2 decimals.) (b) What is the correct formula (using 18 characters or less) that should be placed in cell B5?Note: There are to be NO numbers in the function call (apart from a 0 if appropriate), only cell references, or negative cell references where appropriate. In excel pls.
Suppose you makes a $1,000 initial investment today, a $4,000 additional investment at the end of year one, and another $500 investment at the end of year two. You had returns of 10% in year one, 2% in year two, and -5% in year three. What is the dollar-weighted average return on your investments? Select one: a. -2.59% b. 10.00% c. 0.51% d. -0.73% e. 3.00%
I cannot use excel. Answer this question with equations or financial calculator steps please
Suppose that a 10-year T-note is purchased with a face value of $20,000 and a coupon rate of 3.4% (a) What is the total return of this investment? (b) What is the average rate of retum? (a) The total return is $ (Simplity your answer.) (b) The average rate of return is%. (Simplify your answer. Round to two decimal places as needed.)
Find the present worth sum of money that would be equivalent to the future amounts of $5000 in year 6 and $7000 in year 8 if the real interest rate is 10% per year and the inflation rate is 5% per year. Solve using the factors and their equations with (a) an inflation-adjusted rate, and (b) the real interest rate. Solve manually please
You are thinking about investing in a project that will provide you a cash flow of $78922 in 3 years and of $88519 in 4 years. If your required return on investments of this risk is 15.14%, how much are you willing to pay for this opportunity? Round to 2 decimal places. Include a dollar sign ($) or percent (%) as appropriate. Answer:

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